Transcription of Finance News Network Interview with Australia’s Foreign Affairs Minister, Bob CarrLelde Smits: Hello I'm Lelde Smits for the Finance News Network and joining me today at the Africa Down Under conference in Perth is Australia’s Foreign Affairs Minister, Senator Bob Carr. Bob, welcome.
Bob Carr: My pleasure.
Lelde Smits: First up, could you give us an idea of the value of Australian investment proposed for African mines?
Bob Carr: Well, I quote the figures I used in my speech, and it’s a remarkable story. There’s $50 billion in Australian investment in African mines. And, in fact, one in 20 Australian companies listed on the Australian Stock Exchange has got an investment in Africa. And, I don’t think Australia’s realise how big the flow of Australian money into Africa is.
Lelde Smits: And how does this figure compare to Australian investment in other countries?
Bob Carr: Well, Africa is hosting the largest number of Australian mining projects of any region outside Australia. So, all of a sudden Australia has positioned itself to look across the Indian Ocean at opportunities in Africa. It’s quite striking. This is a big shift.
Lelde Smits: Now Bob, Africa may be filled with resources but it is also filled with risks: Do you believe Africa is safe enough place for Australians to do business?
Bob Carr: Well, Australians have concluded it is. You’ve got companies like Rio Tinto Limited
(ASX:RIO) putting huge sums of money into African mines and sending their people there. Now obviously they and other Australian investors make a decision about what country and the level of risk involved. But, Africa is making big strides towards safety and good governance.
Lelde Smits: Only a few weeks ago South African police reportedly shot dead 34 striking mine workers at the Lonmin mine: Who do you understand was to blame and what do you believe the South African government can do to prevent such tragedies in the future?
Bob Carr: Well we can’t make a decision from where we sit on who was to blame. I acknowledge President Zuma comments and his commitment to an inquiry into the incident. I think our friends in South Africa are in a position to learn from this experience. Obviously investors in mining in South Africa are all going to concerned and they’ll want to see what I’m sure we’ll have, and that is a thorough going and convincing response from the government of South Africa. But, one’s got to say at this point, we extend our heartfelt condolences to the families who lost loved ones in this tragedy.
Lelde Smits: But Bob, the continent has long been plagued with political and cultural instability: Do you think these risks are being managed adequately enough to warrant Australian investment?
Bob Carr: Well the answer is the investment that is taking place. Australia is providing about 40 per cent of the overseas investment in African mining. And, that’s because boardrooms of Australian companies have decided that when you look at the risk, it is worthwhile making a commitment here. And, they’re doing well. And, they’re accepting social responsibility to look after the African communities that are hosting them.
Lelde Smits: Closer to home, there’s been a lot of talk Australia’s mining boom has peaked: Do you agree?
Bob Carr: Well prices are coming off, there’s no argument about that. And, that was responded to by my colleague, Resources Minister Ferguson. But, he’d be the first to acknowledge that there is an awful lot of investment still in the pipeline. So, prices are coming down, in that sense the resources boom has come off. But, you’ve got $270 billion in the pipeline; now that’s a lot of investment.
Lelde Smits: Finally Bob as Australia’s Foreign Affairs Minister, when considering risk and return, which country do you believe holds the greatest opportunity for Australian investment?
Bob Carr: It’s not up to me to tell companies where to look - They’ve got their risk assessment experts, they’ve got their own people on the ground, they’ve got, above all, decades of experience in assessing what’s going to work and not work. All I can do it point to the figures and the figures confirm that one in 20 Australian companies have got an investment in Africa. They confirm that there’s $50 billion of Australian investment in African mining. Now that tells a story, that sends a message, and the message is Africa and Australia can partner effectively together and both sides benefit.
Lelde Smits: Bob Carr, thanks for sharing your views today.
Bob Carr: My pleasure.
Ends
